The Price Is the Same, It Just Costs Less...
The True Cost of Home Ownership...Price vs Cost
Excerpt from the article by Steve Harney on April 26, 2010 in
For Buyers
" ...it is not just the tax credit that makes this the best time in a long time to pull the trigger on the home of your dreams. Prices have reached levels not seen since before the housing bubble. The following graph shows that, according to the S&P Case Shiller Pricing Index, home values have fallen to August 2003 prices.
You Can Purchase A Home Today At The Same Price It Sold For Seven Years Ago
And it will actually COST you less! This blog has been making the distinction between the PRICE and the COST of housing for months now. Price is what you agree is the value of the home. Cost is what you pay every month in the form of a mortgage payment. The cost is a combination of the price and the mortgage interest rate you will pay over the life of the loan.
Interest rates are at historic lows. Interest rates in August of 2003 were over a full percentage point higher than they are today. We can see in the table below that, even though you would pay the same price for a house today, your mortgage payments on a $200,000 loan would be $145.61 less each month. That is an annual savings of $1,747.32. Over the life of a thirty year mortgage you would save $52,419.60"
What does this mean to you?
Move forward with your purchase before interest rates rise!
Just pick up the phone and dial 770-888-9269 to talk to Mike or Melody. They will find you the perfect home.
Labels: Alpharetta, city of milton, cumming, dahlonega, dawsonville, home prices at 2003 levels, homes for sale, johns creek, lake lanier
